Hi everyone, I have been reading posts in this forum for a while and sometimes found many helpful tips. But I am an overseas students doing postgrad in Perth. Hopefully can get my permanent resisdency around mid next year. But, is that anyway I can start investing here now, or more precisely how I can get loan with my overseas visa and be eligible to purchase an established property for investment, is it possible if I can get a local investing partner?
David Femia, I have read your replies to some posts which I found very helpful and appreciated. I recently do little research on Armadale and Gosnells and suburbs nearby. And found some sale houses of 4x(1 or 2)and 3×1 listed in newspapers are less than $100000, and with the rental for those houses, I find them range around $140 to $180 pw. If using Steve 11 second rule, these houses are potentially to be positive geared. HOwever, there seemed to be quite a lot houses listed to be let. I wonder if that means an oversupply of these houses (and high vacancy rate) in these areas or they are just good market there and this type of houses is the dominant rental property in the areas. How can I find out how long it takes in average to get a tenant there?
Please, anyone has any thought about the two suburbs mentioned above, and their surrounding suburbs, any comments are much appreciated? Also other than these suburbs, does anyone know where (at most 2 or 3 hours drive from Perth) can I find property less than $100000 with positive cashflow? I always wonder how other people can find properties around $50000 to $80000 in Melbourne or Sydney, and where can I find those properties in Perth? Again, appreciate anyone’s any comment, Thanks!
From FUN
I too am looking for a positively geared opportunity in Perth. I haven’t done any serious hunting as yet, but from what I have seen so far, it seems rents are quite low as compared to purchase prices, especially for single houses. Can looking for a positively geared oppotunity drive you to purcahse a specific type of buidling (i.e. flat as compared to a house)?
Andrew
Fun;
Just a query to get you thinking…you asked if you can get a local investment partner?
I am just wondering what you are looking for and what you hope to gain from a joint venture? Both financially and (for want of another word)‘educationally’??[
]Simply – market yourself !!! Why would someone want to JV with you???
Pete
…Beware of the dreamtakers…
Hello Fun,
Unfortunately you have not taken into consideration one vital factor. That is Foreign Investmnet Review Board (FIRB). As you are not a permanent resident, you are eligible to buy property, however, it can not be rented out.
You will be able to apply under a student Visa, which limits you to 300K, and can be established or new properties. An alternative, is to have a relative overseas purchase the property, which can then be rented out. The limitation are that it needs to be a new property. This generally rules out the 100K properties.
Finance for overseas investors is generally nota problem, as long as they can service the loan, and the valuation of the home is favourable.
There are some other issues you should consider too.
1). Your taxable income. As I presume you are just studying, the tax benefits will not be as high
2). Armadale and Gosnells attract some unsavoury characters. You will do well to take out landlords insurance.
3). These areas will not have substantial growth.
4). These properties will be old, and therefore not be able to claim a premium on depreciation benefits.
5). Investing closer to the city will bring greater rewards, however, you will need ot invest more.
6).Properties should be rented within 4 weeks.
With so many properties available in that area, you may find it takes longer
7). The cheap properties you refer to from Sydney and Melbourne, are simply available as the population in those areas in twice as much as ours. These properties will also be rented at a higher rate, due to many factors, including location (ie closer to the CBD).Hope this helps.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auGood advice, David. May not be a very wise move to invest in those area.
I suggest if you want +ve geared properties in Perth, look at commercial properties. Otherwise, look out of town.
Thanks very much to everyone taking time to comment. Thanks David for your lengthy and detailed opinions.
Can I buy an investment property with my name and a friend name (who is permanent resident), and then do I still have all the restrictions set in the FIRB?
However, if I can’t get around to buy property now, I can just wait until I get my PR and keep doing my property research now.
TrueBlue, which areas you refer to ‘out of town’? I mean, is it area like Geraldton with 5/6 hours drive or somewhere like Kalgoorlie that needs travel in plane?
Regarding Armadale and Gosnells, and suburbs around, I read the REI report that they have more than 10% growth over last 12months (though can be misleading due to the current market now). As my aim is to acquire positive cashflow property, I’m not too concerned if it’s only little growth as long as not going negative. However, vacancy will be big issue. How do I find out how long in average does a property get rented in the areas?
Also, if I increase my budget to invest closer to city, will I be able to find positive cashflow deal, with the normal 80% or 90% loan?
Thanks again everyone, for informing me alot about issues to consider.
From FUN
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